From my perspective, Taiji Industrial is a rather embarrassing company. As a chip packaging and testing company, there is a huge gap between it and Changchuan Technology and Tongfu Microelectronics, and its revenue share is not large.

In my view, Taiji Industrial is a rather embarrassing company.

Taiji Industrial trend chart for the last 5 days.

is a construction company, but it is not an ordinary construction company;

is a chip packaging testing company. There is a huge gap between Changchuan Technology and Tongfu Microelectronics , and the revenue share is not large.

has made achievements in the field of semiconductor chip , but it is not a pure semiconductor company, and its proportion is still relatively small.

is a photovoltaic company, but photovoltaic-related technologies also have their own outstanding advantages. However, because of its relatively small proportion, its image is not outstanding.

This has created an embarrassing situation for Taiji Industrial in the capital market: currently, Taiji Industrial rarely responds to the rise in construction company stocks; when semiconductor chip stocks rose in the past, Taiji Industrial's performance was far inferior to other companies with authentic themes. Performance of stocks; when Tongfu Microelectronics and other packaging and testing companies rose wildly, Taiji Industrial rose much less than the stocks of this type of company. The early growth of the photovoltaic theme was astonishing, but Taiji Industrial was basically stable.

However, Taiji Industrial is a relatively stable company with its own characteristics. The answer can basically be obtained from the long-term trend of stock prices. As an ordinary retail investor, I rely on a stable and winning investment strategy that I can master. The multiple entries and exits of Taiji Industrial have been relatively successful, and it would be good to gradually extend the accumulated experience to other stocks. Therefore, I still prefer companies like Taiji Industrial.

Tai Chi Industrial daily chart.

According to the recently released semi-annual report, let’s take a look at the specific data of this company.

According to the report for the first half of 2021, Taiji Industrial achieved total revenue of 10.23 billion yuan, a year-on-year increase of 21.9%; net profit attributable to the parent company was 400 million, a year-on-year increase of 26.1%; earnings per share were 0.19 yuan. Taiji Industrial's half-year operating costs were 9.11 billion, a year-on-year increase of 24.1%, which was higher than the 21.9% growth rate of operating income, resulting in a 1.5% drop in gross profit margin.

company's R&D investment has increased significantly, with an increase of 25.6% compared to the same period last year to 280 million. What makes people feel uncomfortable is that Taiji Industrial's operating cash flow dropped from 50.474 million to -480 million, a year-on-year decrease of 1047.3%. Perhaps it is due to the initial investment in new construction projects, or it may be for other reasons, which remains to be further understood.

divides Taiji Industrial's operating structure according to industry, as follows: engineering and technical services, 7.883 billion yuan; semiconductor and other parts, 2.087 billion yuan; power part, 240 million yuan; the rest are ignored.

is classified according to product categories: general engineering contracting 6.856 billion yuan; packaging and testing 1.25 billion yuan; engineering design and consulting 1.01 billion yuan; modules 824 million yuan, and power generation revenue 240 million yuan. Domestic accounting for 77.95%, foreign accounting for 21.7%.

From the above public information, we can clearly see that Taiji Industrial is a company with rich business operations and a wide range of cross-border operations.

Taiji Industrial weekly chart.

The main component of Taiji Industrial's business is engineering and technical services, which are mainly completed by the company's subsidiary Eleven Technology . Eleven Technology has a good market brand advantage in electronic high-tech, solar photovoltaic, biopharmaceutical and other industries. The design and EPC market in different fields have market leading advantages. It is mainly used for large-area, high-level purification air conditioning systems, high-purity industrial gas systems, ultrapure water systems, chemical systems, automatic control systems, data communication systems and anti-static, A professional company that provides design and manufacturing in areas such as anti-microvibration and electromagnetic environmental pollution control.

Eleven Technology is definitely a leading enterprise in the high-tech basic end, but once it is associated with engineering construction, it always makes people feel that it is not so high-end. The important role of Eleven Technology seems not to be widely recognized by the market. In fact, it is difficult to find another company like this in the entire market.

According to incomplete statistics, the total value of new engineering contracts signed recently reached more than 8 billion yuan. This is the main business of Taiji Industrial. However, unfortunately, according to the data published in the semi-annual report, the gross profit margin of these main businesses is only 8.38%. Still relatively low.

From the company's recent announcement, we can see that the company won the bid for the design and construction general contracting of the Xiaohe New Energy and New Materials Industrial Base Project of Shanxi Xinyang Zhonglai Xinyuan Technology Co., Ltd., with a price of 1.559 billion yuan. I am very happy about this. Friends who often read my headlines may know that Zhonglai Shares is also a photovoltaic company that I like and has made great profits. With this announcement of winning the bid, we can also know that Jolywood is continuing to expand its production scale. The two companies that I often follow are closely related, and I am very happy. Winning the EPC general contracting bid for the second phase project of Changxin Xinqiao Storage Technology Co., Ltd.'s 12-inch memory wafer manufacturing base; 5.05 billion yuan. Winning the bid for the EPC general contracting project of SMIC Shaoxing Electronic Information Supporting Industrial Park; 1.66 billion yuan

and above are the projects won by Eleven Technology announced by the company in the past six months. The company's operations are still very active, and the total contract amount is also considerable. It has laid a good foundation for future production and operation.

Taiji Industrial's semiconductor business is mainly completed by Haitai Semiconductor and Taiji Microelectronics, accounting for 20.41%; the gross profit margin is only 14.61%; the photovoltaic power generation part with the highest gross profit margin can reach 52.84%, but the total revenue of 240 million yuan If the volume is too low, it will not help much in improving overall performance.

I personally feel that this is where Tai Chi Industrial is very embarrassed. If it is a pure project contracting performance design, it is acceptable, but its construction and design projects are all related to high technology, whether it is a wafer factory or dust-free and sterile required for biopharmaceuticals, etc., they are all qualification requirements It is very high and cannot be achieved by ordinary engineering companies, but the gross profit margin is too low, which makes people feel that it is a high-tech company, but it earns hard money, and it does not reflect the good benefits that high-tech level should have.

is right to say that Taiji Industrial is a semiconductor company. After all, packaging and testing is an indispensable process in semiconductor chip and other fields. The growth of memory packaging and testing in the future is worth looking forward to: Taiji Industrial has long-term production and operation in the field of storage packaging and testing, and has accumulated technical experience. Taiji Semiconductor will benefit from the growth of Hefei Changxin and Yangtze Memory in the next five years. Expansion plan. Hefei Changxin’s first-phase production capacity is 120,000 pieces/month, and Taiji Industrial is closely related to Hefei Changxin and Yangtze Memory. It will definitely be able to obtain a certain proportion of supporting Hefei Changxin’s memory packaging and testing orders, thereby achieving the goal of becoming the second largest supplier of Haitai Semiconductor. Another profit growth point for memory packaging and testing.

In the context of carbon neutral carbon peaking , I believe that the powerful Taiji Industrial will not ignore this huge opportunity. Rooftop distributed photovoltaics, photovoltaic trees, etc. will depend on the company's next development and business expansion capabilities. .

Due to my limited level, I don’t know much about Tai Chi Industry, but Tai Chi Industry’s stability has taught me a lot. From the monthly line , we can clearly feel that the company's stock price has been relatively stable since 2015. Taking 8 yuan as the axis, if you buy below, the profit probability is very high. Therefore, once there is an opportunity, I will hold Taiji Industrial and wait patiently. Continue to make steady profits.

Tai Chi Industrial monthly chart.

The fields involved in Tai Chi Industry can all become bigger and stronger in the future. The market attaches great importance to chip production and wafer production. However, it may not pay higher attention and premium to the high-tech factory construction that these high-tech enterprises must have. I don’t know what will happen in the future. , whether Tai Chi Industry can achieve a comprehensive breakthrough will continue to surprise me!

The reason why I like Tai Chi Industrial is its relatively good certainty. And very high! The continuous and steady rise for many years, the background of state-owned assets, and the fact that large funds still hold 4% of the shares are all good things.

Large funds may continue to reduce their holdings, but the certainty of Taiji Industrial will not change.

At the beginning of 2020, amid the hype about the concept of semiconductor chips, Taiji Industrial also achieved good gains, and the holdings of large national funds also contributed to the situation. Although it has reduced its holdings now, it still holds 4% of the shares. I will write about the operation experience of this paragraph in the next article.

I wish everyone good luck with your investment!